Should I refinance?

Anonymous · ‎12-29-2015

So right now my auto loan is with capital one at 13.65%. Been approved by open road lending at 7.85% was wondering if I should do it and how is open road lending?

Anonymous · ‎12-30-2015

What length term are you currently in and would you be going to? OpenRoad Lending, in general, seems to have decent reviews online and that APR difference is substantial. As long as the terms are similar (No Prepayment Penalty, etc.) and the company is fairly reputable, a loan is a loan in my opinion, and the savings are worth it as you don't gain anything by paying the bank interest.

As a quick example, if you were financing $20K for 60 months at those interest rates, going with OpenRoad would save you ~$55 per month, or $3300 for the life of the loan. Make sure there aren't any hidden fees or anything, but it seems like a good deal. Good luck!

Anonymous · ‎01-04-2016

I'm still waiting to see if I want to go with them. I'm not saving much only about 35 bucks a month. After looking through paperwork it says my payoff is 18300 when I check my 10 day payoff is 17699. They are also charging me 700 for gap. Terms will still be same remaining 53 payments just instead of 447 it's 412 which is quite a difference from what the loan writer told me over phone of 380 ish

Anonymous · ‎01-05-2016

Hmm, did they say why it went from $380 to $412 all of a sudden? That would be a bit of a red flag. $35 per month is not a big deal, but still is over $1800 for the duration of the note.

Dj4Money · ‎01-05-2016

@Anonymous wrote:
So right now my auto loan is with capital one at 13.65%. Been approved by open road lending at 7.85% was wondering if I should do it and how is open road lending?

Why only down to 7.85%?

I was tempted by these online re-fi deals but I thought I would try Logix and I got a lower rate than they would offer.

Went from 18.23% to 4.49% and reduced my term from 72 months to 48 months as well.

Payment went from $364 to $348. The reduction in term, interest and payment is saving far more than just the reduction in payment, about $10,000

364 x 72 = $26,208 vs $348x48 $16,704 = $9504

Try a local credit union, they might offer you a better deal in order to get you to open an account with them.

If your EQ is over 635, try DCU.

Anonymous · ‎01-06-2016

@Dj4Money wrote:
@Anonymous wrote:
So right now my auto loan is with capital one at 13.65%. Been approved by open road lending at 7.85% was wondering if I should do it and how is open road lending?
Why only down to 7.85%?

I was tempted by these online re-fi deals but I thought I would try Logix and I got a lower rate than they would offer.

Went from 18.23% to 4.49% and reduced my term from 72 months to 48 months as well.

Payment went from $364 to $348. The reduction in term, interest and payment is saving far more than just the reduction in payment, about $10,000

364 x 72 = $26,208 vs $348x48 $16,704 = $9504

Try a local credit union, they might offer you a better deal in order to get you to open an account with them.

If your EQ is over 635, try DCU.

Think I can get lower my experian is actually 647

Anonymous · ‎01-06-2016

@Anonymous wrote:
Hmm, did they say why it went from $380 to $412 all of a sudden? That would be a bit of a red flag. $35 per month is not a big deal, but still is over $1800 for the duration of the note.

They added in gap on contract and the extra above my payoff just in case it changes. I asked under writer how can it change? It's the 10 day payoff

StartingOver10 · ‎01-06-2016

@Anonymous wrote:
@Anonymous wrote:
Hmm, did they say why it went from $380 to $412 all of a sudden? That would be a bit of a red flag. $35 per month is not a big deal, but still is over $1800 for the duration of the note.
They added in gap on contract and the extra above my payoff just in case it changes. I asked under writer how can it change? It's the 10 day payoff

That is a red flag to me. The 10 day payoff quote is X and there is no reason for the balance to change unless their payment to your lender takes longer than 10 days. GAP has nothing to do with the payoff - did you ask for gap? $700 is high. Check with your insurance co for an alternate quote if you want gap. Do you actually need it?

Go with a CU - sounds like you are getting quoted for a better loan than what you have now, but it is very possible you can do better.

Anonymous · ‎01-06-2016

@StartingOver10 wrote:
@Anonymous wrote:
@Anonymous wrote:
Hmm, did they say why it went from $380 to $412 all of a sudden? That would be a bit of a red flag. $35 per month is not a big deal, but still is over $1800 for the duration of the note.
They added in gap on contract and the extra above my payoff just in case it changes. I asked under writer how can it change? It's the 10 day payoff
That is a red flag to me. The 10 day payoff quote is X and there is no reason for the balance to change unless their payment to your lender takes longer than 10 days. GAP has nothing to do with the payoff - did you ask for gap? $700 is high. Check with your insurance co for an alternate quote if you want gap. Do you actually need it?

Go with a CU - sounds like you are getting quoted for a better loan than what you have now, but it is very possible you can do better.

No I didn't asked for gap the underwriter just added it in. I can probably do better but it's taking forever. Sending in all the info with paycheck stub for the 15000/month I make and now they saying it won't work I need to send in check for December 25th saying December 10th is too old

StartingOver10 · ‎01-10-2016

They are saying Dec 10th is too old because your paystub is more than 30 days old. IME the paystubs have to be less than 30 days old when paystubs are required.